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Non-receipt of dividend warrant: clarification

June 08, 2013

APROPOS S.G. Jilanee’s letter ‘A plea by NBP shareholder’ (June 4), I would like to assure him that the SECP is here to redress his grievances. In response to his complaint about a delay in receipt of the cash dividend announced by the National Bank of Pakistan in March, I would like to draw his attention to the following facts:

A dividend warrant No. 7920 for Rs14,187 was dispatched to him on April 26, 2013, by the Central Depository Company of Pakistan Limited (CDC), the Share Registrar of the NBP at his address registered with CDC through registered post.

Mr Jilanee through his letter of May 20 lodged a complaint with the CDC for non-receipt of the said dividend warrant.

The dispatched dividend warrant was not received back as undelivered to the CDC. So on May 29 the CDC requested the NBP to stop payment against the said dividend warrant, which had been lost. The CDC through its letter of June 3 has already requested Mr Jilanee for necessary formalities required for issuance of a duplicate dividend warrant.

Subject to completion of the said necessary formalities by Mr Jilanee, duplicate dividend warrant will be issued to him promptly.

It may be mentioned here that to facilitate shareholders of companies and to encourage payment of cash dividend through direct credit into shareholders’ respective bank accounts, the SECP has introduced certain amendments to the transfer deed used for transfer of share.

Moreover, to provide the dividend mandate option to the existing shareholders, the SECP has issued necessary directive to all the listed companies and their share registrars to seek the dividend mandate option from their respective shareholders on the prescribed dividend mandate form, which is available with all the listed companies and their respective share registrars.

To avoid loss/misplacement of dividend warrants, delay in encashment of dividend warrants and fraudulent encashment of dividend warrants, shareholders of listed companies are advised to opt for payment of their cash dividend(s) through direct credit in their bank accounts. All complaints can be lodged with the SECP at the following address: